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Calculate the worst-case npv for this project

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Question - A four-year project is expected to sell 12,000 units annually at $24.00 per unit. Estimated variable cost is $9.00 per unit, fixed cost is $37,000 per year. Initial cost of the project is $80,000 and straight-line depreciation will be used. The estimates of quantity sold and price may vary by 10.80% (plus or minus), while unit variable cost and fixed cost may vary by 5.60% (plus or minus) from their respective estimates. Calculate the worst-case NPV for this project, assuming a discount rate of 8.00% and a marginal tax rate of 35%.

a. $133,389

b. $385,982

c. $176,446

d. $237,591

e. $251,047

Reference no: EM133036781

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